Thursday, October 01, 2015

Minor Gains

Things were looking a lot brighter in premarket, but in the end bulls were able to push markets into a higher close, even if volume was lighter than yesterday.

The S&P nicks a breakout of declining resistance from the September high, but hasn't yet challenged declining resistance connecting August and September levels. Technicals hold on to their bearish outlook. Based on the table listed at the end of this article, the S&P would need to drop to 1,600 to register a 25% loss from highs.


The Nasdaq did well to finish where it started. The doji to follow on from yesterday's gains suggests there will be further gains on Friday (but take nothing for granted!).


It had looked like the Russell 2000 was going to push down to touch provisional declining channel support, but it hasn't done so yet. Technicals are all net bearish.


The Semiconductor Index also remains poised to break higher. It's still stuck flush to declining resistance with the 'bull trap' still in play. Technicals are not as bearish as for lead indices.


Tomorrow#s job data is another opportunity to mix things up. August lows are important, but a new low would prove attractive for value buyers. Shorts are working with a short tether, and would need a good rally to reset the bear clock. Also, the move into October puts three consecutive months of bearish action into play, opening up an opportunity for a bearish rally.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I do a weekly broadcast on Friday's at 13:30 GMT for Tradercast, covering indices, FX and gold, silver and oil - all are welcome! You can read what others are saying about Zignals on Investimonials.com.

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